The June 13 passing of bill that aims to force shipping companies to accept U.S. exports on the return trip to Asia, and which further codifies Federal Maritime Commission's attempts to police detention and demurrage charges, was hailed by politicians as an inflation solution and greeted with caution by industry players.
While several key players portrayed negotiations as active on the trade title, House Ways and Means ranking member Rep. Kevin Brady, R-Texas, said: "We've had virtually no discussions on the trade provisions in the China conference. We're eager to get talking about it. The trade provisions are not going to be easy. I do think there's common ground, but the clock's ticking and we have a lot of work to do, and the sooner we get to it, the better."
A top official in the Office of the U.S. Trade Representative said that opposition to extending a moratorium on tariffs on sales of intangible goods has surfaced before, but that the e-commerce moratorium has been renewed at every World Trade Organization ministerial conference since 1998. "There are a few countries, despite benefiting from e-commerce and digital trade, who continue to resist an extension of the moratorium," she said, but most countries, including in the developing world, see the tariff-free status as important.
A German think tank specialist in semiconductors' value chain vulnerabilities told the U.S.-China Economic and Security Review Commission he's concerned that the policy focus on bringing more production back to either the EU or the U.S. won't achieve its aims because policymakers aren't sure what those aims are.
President Joe Biden, speaking at the Port of Los Angeles, praised the collaborative work of port officials and workers and the government to break through logjams, and partly blamed foreign-owned shipping companies for rising prices.
Rep. Stephanie Murphy, D-Fla., who's been a defender of trade liberalization, introduced a bill that requires the Treasury Department, the Office of the U.S. Trade Representative and the International Trade Commission to assess whether the Section 301 tariffs, Section 232 tariffs, safeguard tariffs and the expiration of the Generalized System of Preferences benefits program have contributed to inflation.
Sen. Sheldon Whitehouse, D-R.I., is proposing a limited carbon tax on firms that are dirtier than average in about a dozen industries, and a carbon border tax on imports in those industries that are also above those benchmarks. The fee would start in 2024, for fossil fuel producers, refiners of petroleum products, petrochemicals manufacturers, fertilizer producers, hydrogen producers, adipic acid processors, cement producers, iron and steelmakers, aluminum producers, glass producers, pulp and paper plants, and ethanol producers. According to a press release from Whitehouse.
The top Republican on the House Ways and Means Committee, Rep. Kevin Brady, R-Texas, said he doesn't think the chatter among lobbyists that the trade title could be dropped from a compromise China package has any merit (see 2205310033). Lobbyists were reacting to a leaked timeline that said the negotiations should be finished, and the new legislative language done, by June 21. The House is scheduled to leave Washington for two weeks at the end of the day on June 24.
A week before U.S. Trade Representative Katherine Tai heads to Geneva for the World Trade Organization's ministerial conference, she said she's excited for what the meeting could bring, though she avoided predicting that either an intellectual property waiver for COVID-19 vaccines would be approved, or that the 20-year fisheries negotiations would be closed.
The U.S. has brought another rapid response request, this time over an alleged violation of worker rights at the Teksid Hierro de Mexico plant in Frontera, Mexico. According to the parent company's website, the plant makes iron castings used in heavy trucks made by Volvo, Cummins, Mack Trucks and others. The owner of the company is Stellantis, the conglomerate that owns the Chrysler brand.